The company amended its Term Loan B facility maturing Oct. 2021. The facility size has been decreased to $825 million, from $1.125 billion, and the interest rate has been reduced by 25 basis points to LIBOR + 1.75%, from LIBOR + 2.00%.

The company also amended its senior secured credit facility maturing July 2021, currently priced at LIBOR + 1.75%. This facility includes its $670 million Term Loan A, and an $800 million revolving credit facility (increased today from $500 million), on which $537 million is currently drawn. Under the terms of the amended agreement, the interest rate spread over LIBOR will be reduced by an additional 12.5 basis points upon certification of attainment of a certain debt leverage threshold, which is expected to result in the lower rate spread pricing before the end of 2018.

These restructuring actions are expected to result in annualized interest expense savings of approximately $4-5 million. In the second quarter of 2018, the company expects to incur approximately $3 million of transaction fees and $5-6 million of accelerated amortization of debt issuance and discount costs.

These actions follow the previously announced comprehensive restructuring of the company’s debt during the second half of 2017, which drove more than $45 million of annualized interest savings.

Forward-Looking Statements

This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company’s outlook and plans regarding debt restructuring and reduction. Actual results may differ from those expressed or implied in the company’s forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation,... click to read the full release